Coinbase Intensifies Actions Against Crypto Ties to Hamas

Share IT

Key takeaways : 

  • Berenberg Capital Markets report attributes Coinbase’s cautious stance to regulatory actions and the impact of the Israel-Hamas conflict.
  • Israeli authorities have been seizing digital assets associated with Hamas since the conflict’s outbreak last week.

Recent reports have shed light on the use of cryptocurrency by Hamas militants to fund attacks on Israel, a development that may have adverse effects on Coinbase‘s crypto lobbying efforts in the United States.

 According to a new investment report from Berenberg Capital Markets, the ongoing regulatory actions against Coinbase in the U.S. and the political ramifications of the Israel-Hamas conflict are primary factors contributing to a “cautious stance” toward the platform.

Coinbase Intensifies Actions Against Crypto Ties To Hamas

While Hamas had previously declared in April that it would cease using cryptocurrency for fundraising, citing concerns about authorities’ ability to trace transactions on blockchain ledgers, the recent headlines are expected to further complicate the already complex matter of defining the legal status of cryptocurrencies,” remarked Palmer of Berenberg Capital Markets.

In response to these concerns, Coinbase issued a statement emphasizing its strong commitment to combating illicit crypto usage, stating, “No currency of any type – whether it’s fiat, gold, or crypto – should ever be used to support Hamas or any other terrorist organizations.” 

The company underlined its robust compliance program, encompassing KYC checks, sanctions screening, suspicious activity reporting, and collaborative partnerships with law enforcement agencies to prevent and detect any illicit activity within its platform. 

In recent times, cryptocurrency platforms like Coinbase are facing mounting pressures due to evolving regulatory landscapes and geopolitical events. These challenges underscore the industry’s struggle to strike a balance between promoting financial innovation and implementing robust security and compliance measures.

Given these ongoing developments, it becomes crucial to closely examine how crypto companies are navigating these complexities and adjusting to address the changing global concerns.

Just a few days ago, a significant development emerged as Israeli authorities froze cryptocurrency accounts affiliated with the Palestinian militant group Hamas, and they received assistance in this action from the cryptocurrency exchange, Binance. This move comes in the midst of concerns surrounding the Israel-Hamas conflict.

Berenberg Capital Markets’ recent report highlights that their cautious stance on Coinbase Global doesn’t primarily stem from the company’s immediate performance but rather from the significant threats posed by ongoing regulatory actions and litigation in the United States. Mark Palmer, an analyst at Berenberg, stressed these potential obstacles facing Coinbase due to its legal entanglements.

Furthermore, complicating the landscape, there are reports that Hamas has employed cryptocurrency for fundraising efforts leading up to recent attacks in Israel. This development adds an additional layer of complexity to Coinbase’s endeavor to lobby for more favorable cryptocurrency legislation in Congress.

Share IT
Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

Can’t find what you’re looking for? Type below and hit enter!